Foreign Investment Law

Since January 1, 2020, the Foreign Investment Law of the People's Republic of China and the Regulations for the Implementation of the  Foreign Investment Law of the People's Republic of China have been in effect. According to the Foreign Investment Law, China offers pre-establishment national treatment plus a negative list management mechanism for foreign investment. "Pre-establishment national  treatment" refers to the treatment given to foreign investors and investment in respect of market access at a level no less favorable than  that given to domestic investors and investment. "Negative list" refers to China's special administrative measures for access of foreign investment in specific areas, which means national treatment shall be granted to those that are not on the negative list.

The Establishment of Foreign-invested Enterprises

Since January 1, 2020, relevant applicants, when establishing new foreign-invested enterprises, whether or not restricted by the "negative list", do not need to apply for approval by the Shanghai Municipal Commission of Commerce. Instead, they can apply through the onestop service system for foreign affairs, and the market supervision department shall directly register the application in accordance with the access requirements. Applicants shall sign the commitment letter as required when applying for incorporation.